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of <h1>White petroleum jelly classified as cosmetic not medicine despite antiseptic properties under Notification S.T.-2-5784</h1> The Allahabad HC upheld the Tribunal's classification of white petroleum jelly (Vaseline) as a cosmetic rather than medicine under Notification No. ... Classification of white petroleum jelly (commonly known as Vaseline) - under the entry of 'All kinds of cosmetics. . .' or as 'medicine' - Notification No. S.T.-2-5784-/ X-10(1)-80-U.P. Act 15/48 - Meaning of words 'cosmetic and medicines' - HELD THAT:- In the present case, Tribunal has recorded categorical finding that the white petroleum jelly, which is commonly known as Vaseline is used for the care of skin. Learned counsel for the applicant is not able to challenge this finding. In the aforesaid notification the item used for the care of face, skin is covered under the entry 'All kinds of cosmetics. . .' of the aforesaid notification. It is not necessary that it should be for beautification only. Entry covers even those cosmetics, which are required for care of face and skin. Even assuming that it may have some character to heel the cuts and fissures, it will not cease to be cosmetics under the aforesaid notification. Care of skin includes healing the cuts and fissures. It is neither used for cure of the disease nor to prevent any disease. Himani Boroplus is commonly and generally available in a cosmetic or general merchandise shop and not in a medicine shop. It is generally and commonly used during winter to protect skin and to make it smooth. It is commonly known as cosmetic and not as a medicine. It may have some antiseptic effect but that will not classify it as medicine. It is not intended to be used for treatment, mitigation or prevention of disease. Entry of cosmetic is much wide to include all cosmetic not only used for beautification but also for care of skin. A product, which is used for care of skin must necessarily have some antiseptic effect but that will not take out the product from cosmetic and to bring under medicine. It is mainly used to protect the skin from cut, etc., and to provide smoothness. The Vaseline is normally sold in cosmetics shop and not in a medicine shop. In common parlance also it is known as cosmetics and not as medicine. In the circumstances, I do not find any error in the order of the Tribunal. Decisions relied upon by the learned counsel for the applicant are distinguishable and are not applicable. In the result, all the revisions fail and are dismissed. Issues Involved:1. Classification of white petroleum jelly (commonly known as Vaseline) under the U.P. Trade Tax Act, 1948.2. Determination of whether Vaseline is taxable as a cosmetic or as a medicine.Issue-wise Detailed Analysis:1. Classification of White Petroleum Jelly under the U.P. Trade Tax Act, 1948:The primary issue revolves around the classification of white petroleum jelly (Vaseline) under the U.P. Trade Tax Act, 1948. The applicant contended that Vaseline should be classified as a medicine due to its requirement for a drug license in its manufacturing process. Conversely, the assessing authority classified it as a cosmetic under Notification No. S.T.-2-5784/X-10(1)-80-U.P. Act 15/48-Order-81, dated September 7, 1981, and taxed it at 12%. The Tribunal upheld the assessing authority's decision, leading to the applicant's revisions.2. Determination of Whether Vaseline is Taxable as a Cosmetic or as a Medicine:The applicant's argument was based on the premise that Vaseline is used to heal cuts and fissures of the skin, thus qualifying it as a medicine. They cited various judicial decisions to support their claim, including Deys Medical Stores Limited v. Commissioner, Trade Tax, and Union of India v. G.D. Pharmaceuticals Limited, among others.The learned Standing Counsel countered that Vaseline is primarily used for skin care and is commonly available in cosmetic shops, not medicine shops. They argued that the requirement for a drug license in manufacturing does not change its classification from a cosmetic to a medicine.Relevant Legal Precedents and Definitions:- Cosmetic Definitions:- Collins Advanced Learners Dictionary: 'Cosmetic are substances such as lipstick or powder, which people put on their face to make themselves look more attractive.'- The Concise Oxford Dictionary: 'Intended to beautify hair, skin or complexion, etc.; imitating or restoring normal appearance; intended to improve appearances.'- Medicine Definitions:- Random House Dictionary: ''Medicine'-1. Any substance or substances used in treating disease or illness; medicament; remedy.'- Corpus Juris Secundum: ''Medicine'. A technical and generic term, derived from 'mederi'.'Judicial Interpretations:- Common Parlance Test: The Supreme Court in Ramavatar Budhaiprasad v. Assistant Sales Tax Officer emphasized that terms not defined in statutes should be construed as understood in common parlance.- Trade Understanding: In Collector of Customs, Bombay v. Swastic Woollens (P) Ltd., the Court held that trade understanding is the safest guide for classification.- Toothpaste and Tooth Powder Cases: In Commissioner, Sales Tax v. Sarin Chemical Laboratory, the Court classified toothpaste and tooth powder as toilet requisites despite their medicinal claims.Tribunal's Findings:The Tribunal found that Vaseline is used for skin care, aligning it with the entry 'All kinds of cosmetics and toilet preparations for beautification or care of the face, skin, hair, nails, eyes or brows' under the relevant notification. The Tribunal noted that the product is generally available in cosmetic shops and not in medicine shops, reinforcing its classification as a cosmetic.Conclusion:The High Court upheld the Tribunal's decision, concluding that Vaseline is primarily used for skin care and falls under the category of cosmetics. The Court emphasized that the mere presence of some medicinal properties or the requirement of a drug license does not alter its classification. The product is not intended for the treatment, mitigation, or prevention of disease, which are key characteristics of a medicine. Consequently, the revisions were dismissed, affirming the classification of Vaseline as a cosmetic subject to tax under the specified notification.
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